Advertising expo: Ad industry bucks the instability trend, sees growth
Despite a gloomy economic scenario of the country plagued by political instability, load shedding and liquidity crunch in the banking sector, the advertising industry is continuing to grow.
According to the Advertising Association of Nepal (AAN), the industry is growing by 19 percent annually for the last few years. “Advertising has become an integral part of any business for building brand loyalty and promotion of any product and service,” said AAN President Raj Kumar Bhattarai.
Advancement in the printing technology, expansion of TV and radio networks and the entry of the new generation of internationally trained and creative manpower has enhanced the quality of advertisements and its segment size. “In the first six months of the current fiscal year, the industry witnessed a growth of 15 percent compared to the same period last year,” said Bhattarai. As of 2009, the size of the business was worth Rs 3.5 billion. “The size has already surpassed Rs 4.5 billion mark as of now,” said Bhoj Raj Aryal, chairman of Infinity Nepal, a media and advertising research agency.
Print media still remains the biggest advertising platform, accounting for more than 30 percent of the total advertisement. However, television media is also catching up with the print media. As of 2009, televisions got advertisements worth Rs 900 million.
Growth of FM radios in Nepal over the last decade has been one of the success stories of the Nepali media. And, this expansion has also increased the pie of advertisements going to radios. AAN statistics show that advertisements worth Rs 650 million went to the radio segment.
Advertising agencies say that the size of the business would have been much bigger had the country’s economic environment been good. With the slowdown in business activities in recent days, advertisers are slashing their advertising budget, according to them. Most sectors including banking, real estate, auto-mobile, education and manufacturing industries have slashed their costs for marketing and promotional activities of late, they said.
With banks not sanctioning loans due to liquidity crunch, the realty sector is facing a slump. High rise in duty has decreased automobiles import. The manufacturing sector is marred by labour problems. “The real estate sector’s advertisement has declined by more than 25 percent compared to that of last year,” said Bhattarai.
Even advertisers do not find appropriate for advertising in the electronic media due to the 14-hour load shedding which has largely kept people away from televisions and radios. Agencies say that marketing and promotion through TVs and radios have declined leaving a negative impact on the growth of the sector.
Bhattarai said the industry is facing a lack of orders for the last three months despite a positive growth in the first six months of the current fiscal year. Among the three major advertisement media— TV, radio and print— investment for marketing and promotion in TV and radio has declined significantly in recent days due to load shedding, according to agencies.
Agencies say that they are receiving orders for the print media advertising and outdoor media like billboards, hoarding boards and flex, among others. “Priority for TV is less due to load-shedding, even though it is more effective,” said Sanju Koirala, corporate communication manager of Ncell, which invested a huge amount last year for building brand image. She said while investing for any advertisement, it should guarantee a double return.
Navin Paudel, managing director of Sanjivani Media Services, said advertisers have cut their advertising investment by 30-40 percent.
Expo will strengthen the sector
Why is Ad & Media Expo-2011 being organised?
Catalysed by the growth in media, the advertisement sector is rapidly transforming into a large industry. At this time, the expo will play a vital role in strengthening the sector, creating awareness among people about advertisement and its importance.
How is the present situation of the country’s advertisement industry?
The annual turnover is increasing each year by 12-15 percent. However, the industry is currently facing a slowdown as an impact of political instability, load-shedding and financial crunch in banks and financial institutions. Advertisement spending on noodles, cement, iron rode, real estate and auto-mobile promotion has declined compared to last year.
What is so special about the workshops being held on the sidelines of the expo?
There will be workshops related to digital art, brand management, latest technologies being used in the sector, creativity and media marketing, among others. The workshop will be the best platform for people from the advertisement field and media to sharpen their knowledge and for students to know about the media and advertisement.
Posted on: 2011-04-28 08:26
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